Tips on Buying a Home in This Competitive Market

Getting Competitive

Let’s talk home buying tips in San Diego, in the midst of a competitive market. We think Merriam-Webster put it best. How do you define competition?

  • The effort of two or more parties acting independently to secure the business of a third party by offering the most favorable terms
  • Active demand by two or more organisms or kinds of organisms for some resource in short supply
  • Contest between rivals

Let’s face it: it is a competitive market in southern California for real estate buyers. You may find yourself falling in love with a property, only to have it snatched up by a competitive buyer, often within a few days of going on the market. So how can you position yourself to be the winning bid?

Home Buying Tips in San Diego: You Need a Plan

It’s time to bring your “A” game to the competition. It’s all about game preparation and proper execution. Our team at Richard Realty can help you put your game plan in motion!

  • Know what you are willing to pay: we all want the best…of the most…for the least amount of money. You may see the asking price and want to lowball an offer, hoping to get it somewhere in the middle. When it is a seller’s market, that strategy just doesn’t work. Our realtors will help you find the comparable listing prices in the neighborhood, to know what price point makes sense. Let’s face it: if a seller is getting multiple offers, and yours is the lowest, you are probably not going to pick up the keys to that house. So plan to come in with a strong opening offer for the best chance of success in a seller’s market.
  • Get prequalified or preapproved for a loan. You may know what you can afford, but the seller doesn’t. The only way to prove to the seller that you are ready to buy and serious about your offer is to get prequalified. It takes away your competitive advantage if you don’t have the cash to purchase without a mortgage and haven’t talked with a lender. It gives a signal to the seller that you haven’t taken the time to get your financial house in order, and you may not be a serious buyer.
  • You don’t want to think too long. Yes, we know impulse buying isn’t wise, but neither is taking too long to come in with a bid. Come into the process knowing the neighborhoods you want, the type of home, and your potential bid, then make it sooner rather than later.
  • Think how you can assist the seller in order to make your offer more attractive. Is there something the seller needs in order to get the right offer? It may not even be the highest offer, but say, for example, the seller needs to stay in the home for a month or two after closing in order to secure a new residence. We can assist you by stipulating  in the contract that the seller pays the buyer rent for that amount of time. Trusted real estate agents like ours at Richard Realty can help you negotiate these types of provisions in the contract that can ensure your success at the bargaining table.
  • Get experienced help. The purchase of a home is usually the biggest purchase you will ever make, so don’t go it alone. You need to work with a trusted, experienced agent to give you every advantage to win the house buying competition.
  • Get ready for a competitive bidding war. So you’ve found the house of your dreams, but another potential buyer is bidding, too. It makes strategic sense to set your house search a bit below your maximum budget in order to give you some wiggle room if a bidding war begins.

Our team of experts at Richard Realty stand ready to assist you in this competitive real estate market. Contact us an let us know how we can help you find the house of your dreams.!